LA COUNTY PROPERTY VALUES NEAR $1.9 TRILLION
May Forecast Projects 6% Increase; Record $100 Billion Add
LOS ANGELES, CA – Driven in large measure by a robust housing market, Los Angeles County Assessor Jeffrey Prang announced the May 15 forecast for the 2022 Assessment Roll will be a 6% increase over last year and the added amount will exceed $100 billion for the first time ever.
The May forecast is the anticipated totals that will appear on the Assessment Roll after it closes June 30. The forecast gives cities and others a blueprint for planning purposes on municipal budgets as well as funding for public services. The Assessment Roll that’s published after June 30 is the inventory for all taxable property in the County for that particular year and, as such, can provide insight into the health and challenges of the real estate market as well as the local economy as a whole.
To access the entire forecast for the 2022 Assessment Roll go to https://assessor.lacounty.gov/
“The pandemic for the past two years has caused great hardship to many parts of the economy, but not in the housing market,” Assessor Prang said. “Low interest rates, inflation, and high demand continued to boost home values to new highs. As an example, the County’s median home price reached a new record of $886,000 in September 2021.”
The $1.86 trillion total net value translates into more than $18 billion in property tax dollars for vital public services such as public education, first responders and healthcare
workers, as well as other County services. This forecast also indicates economic growth for the 12th-consecutive year. Assessments are based on the value of property on January 1, 2022.
“The growth in the single-family residential market is projected to produce a record-breaking increase in transfer assessments,” Assessor Prang said. “Transfers are expected to add more than $68 billion, surpassing the previous 2006 record of $65 billion. That’s expected to push the Roll to a total net value of $1.83 trillion and a growth of 6%.”
By contrast, the 2021 Assessment Roll grew by 3.7% over the prior year, pushing that year’s figure to $1.76 trillion.
The inflation adjustment also is one of the most significant contributors to the growth of the Roll. This year the California Consumer Price Index trended beyond the full 2% allowable under Proposition 13. This component is anticipated to add an estimated $34 billion to the 2022 assessment roll.